SC stays Rs 5,000 cr NTPC tender for cooling towers

NEW DELHI: The Supreme Court today stayed the Rs 5,000 crore tender of the country's largest power producer NTPC for a cooling tower at its Navinagar plant on the petition of Paharpur Cooling Towers.

A bench of Justices Altamas Kabir and Cyriac Joseph stayed the tender -- awarded to Lanco Infratech -- till September 7, the next date of hearing.

The apex court also directed NTPC to file a reply on the allegations of Paharpur Cooling Towers that it was wrongly eliminated from the tendering process.

Senior advocate Mukul Rohatagi, appearing for Paharpur, submitted that NTPC awarded the tender for Induced Draft Cooling Tower (IDCT) in violation of the terms and conditions of the tender agreement.

He submitted that according to the conditions, the bidder must have experience in designing, constructing and commissioning of IDCT or any of their associate, who was participating in the bid.

Rohatagi submitted that Lanco was banking on Encon Services Ltd (ESL) -- recently amalgamated with Lanco -- which had completed projects for Korea Heavy Industries and Construction Co Ltd. Moreover, it has got it designed from Shriram Tower Tech Ltd.

He further submitted that the difference between the bids of Lanco and Paharpur was only Rs 4 crore, and Paharpur was ready to supply at that price with its vast experience in the sector.

However, the submission was opposed by senior advocate Vikas Singh -- appearing for NTPC -- and said Paharpur was just obstructing the plant.

"Paharapur was aware from January 2010 that they have been disqualified and kept waiting and approached the court a year later," said Singh, adding that any stay at this stage would delay the Navinagar Project.

However, the apex court was not satisfied and said, "When you have waited for this tender from 2008 and you can wait for even some more time and stayed the project".

The bench was not convinced with the arguments of senior advocate Jayant Bhushan appearing for Lanco. It declined Lanco's plea to allow them to start the preparatory work for construction of IDCT and said, "We would have to see first whether you have the required expertise or not. These are very critical and important power projects".

NTPC is constructing 4x250 MW Nabinagar Thermal Power Project in Aurangabad district of Bihar. It is a joint venture between Bhartiya Rail Bijlee Company Ltd, a subsidiary of NTPC and the Indian Railways. BRBCL holds 74 per cent stake in the JV, while the rest is held by Indian Railways.

Bids for IDCT was invited August 2008. Earlier, Paharpur had moved the Delhi High Court, which had dismissed its plea and imposed Rs 13 lakh in costs on the company for unnecessary litigation.